Every year the majority of businesses must prepare their annual financial accounts so that the HMRC can calculate the required tax bill for the business. While this process can be completed more than once a year, it is an annual requirement. Financial accounts can also be used to further identify where your business may be struggling or excelling, helping you to find areas in your business that require further examination. A professionally completed financial account will cover all areas of your finances, ensuring there are no mistakes in your book keeping. A professionally trained account may then be able to advise you on structures that could be further beneficial to your business.
ANNUAL FINANCIAL ACCOUNTS
Full statutory accounts must include:
• Profit and loss accounts
• Balance sheet
• Account notes
• The director’s report
• The auditor’s report
• The company director’s signature and name
Even a dormant company has to deliver accounts, although they must be dormant accounts consisting of a balance sheet together with notes.
Annual Financial Accounts for limited companies, partnerships or sole traders will have same fundamental motive, i.e., to present accurate figures to third parties and revenue. Small and medium business must take care when drafting annual financial accounts. When drawing up profit and loss accounts, it is important to use the financial ratios. Getting help from a professional accountancy firm like The Accountancy Solutions is the best way to ensure that problems are avoided and complications are kept to a minimum. Drawing up annual accounts can be an extremely challenging task, and it is imperative that the task is completed correctly in order to determine the correct amount of tax and the right information for investors and shareholders is provided. Thanks to our expertise in this area, we can ensure that your annual accounts are accurate and properly drawn up.